Ferrous metals (containing iron) are typically priced by the ton. Here are the latest market averages:
| Material | Price Per Ton | Price Per Pound | Common Sources |
|---|---|---|---|
| Heavy Melting Steel (HMS) #1 | $210-$250 | $0.105-$0.125 | Structural beams, clean machinery |
| HMS #2 | $180-$220 | $0.090-$0.110 | Mixed heavy steel, thicker than 1/4" |
| Shredded Steel | $160-$200 | $0.080-$0.100 | Processed vehicles, appliances |
| Cast Iron | $130-$170 | $0.065-$0.085 | Pipes, engine blocks, heavy fixtures |
| Light Iron (Tin) | $90-$130 | $0.045-$0.065 | Appliances, auto bodies, sheet metal |
| Rebar | $150-$190 | $0.075-$0.095 | Construction site scrap |
Prices vary daily based on Chicago steel futures
Factors Affecting Ferrous Metal Prices
1. Global Steel Demand
Chinese manufacturing activity
U.S. infrastructure projects
Automotive industry needs
2. Regional Market Conditions
Proximity to steel mills
Local industrial activity
Transportation costs
3. Material Quality
Cleanliness (free of contaminants)
Proper sorting by grade
Preparation (cutting, baling)
4. Economic Factors
Fuel prices affecting transportation
Tariffs on imported steel
Scrap metal export demand
Where to Get the Best Prices
Top Buyer Types:
Steel Mills - Highest prices for bulk quantities
Shredding Operations - Accept mixed loads
Brokers - Handle logistics for large shipments
Local Scrap Yards - Convenient for smaller loads
Regional Price Variations:
Great Lakes Region: $10-$20/ton higher (mill proximity)
Gulf Coast: Competitive export market
West Coast: Slightly lower due to transportation
How to Maximize Your Scrap Value
Preparation Tips:
✔ Sort by grade (HMS #1 vs #2)
✔ Remove contaminants (plastic, rubber, non-ferrous metals)
✔ Cut to manageable sizes (typically <5')
✔ Accumulate quantity (1+ ton loads get better rates)
Selling Strategies:
Monitor CME steel futures
Time sales during quarterly mill buying periods
Build relationships with local buyers
Consider direct mill sales for 50+ tons
Ferrous vs Non-Ferrous Recycling
| Characteristic | Ferrous Metals | Non-Ferrous Metals |
|---|---|---|
| Magnetic? | Yes | No |
| Weight | Heavy | Light |
| Price (2024) | $0.04-$0.12/lb | $0.30-$4.00/lb |
| Rusts? | Yes (except stainless) | No |
| Recycling Rate | 90%+ | 60-70% |
Environmental Impact of Ferrous Recycling
Energy Savings: 75% less than virgin production
Emissions Reduction: 86% fewer greenhouse gases
Resource Conservation: Saves 1.5 tons of iron ore per ton recycled
Landfill Diversion: Steel comprises 25% of landfill weight
Future Market Outlook
Price Projections:
Q3 2024: Expected 5-8% increase (construction season)
2025: Potential stabilization if infrastructure bills pass
Industry Trends:
Increased use of AI sorting technology
Growing electric arc furnace capacity
Tighter quality standards for export scrap
Rising demand from green steel initiatives
